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Smart Summary

Factual and Procedural Background

The plaintiffs appealed under the Letters Patent against a reversing decree of the learned single Judge, which had dismissed the plaintiffs' claim for possession of a house and arrears of rent. The disputed house had originally been owned by two defendants (Balchand and Pachorilal) and their father, Lachhmandas. On 22 January 1938 the three executed a sale deed in favour of the plaintiffs and, on the same date, the two defendants executed a chitthi undertaking to pay Rs. 150 as rent for one year and to vacate the house at the end of that year. Lachhmandas later died. The plaintiffs obtained a decree under section 77 of the Registration Act directing registration of the sale deed but failed to present it for registration within 30 days of the decree and thus could not get it registered (as finally decided in Munnalal v. Pachorilal).

The plaintiffs brought several suits: Civil Suit No. 70 of 1941 for arrears of rent (compromised, with defendants obtaining satisfaction-by-instalments order from the Debt Relief Court), Suit No. 57-B of 1945 (decree in terms of compromise), and Suit No. 6-B of 1950 (dismissed in default). By notice dated 19 February 1951 (received 21 February 1951) the plaintiffs terminated the tenancy, required vacation by 22 March 1951, but the defendants continued in possession.

At first instance the trial Court accepted the defendants' defence and dismissed the suit. The first appeal Court reversed that decree. The learned single Judge on second appeal restored the decree of the trial Court. The present appeal challenges the conclusions of the learned single Judge on several points, including the consequences of the death of one defendant during the pendency of the appeal and whether the agreement constituted a tenancy.

Legal Issues Presented

  1. Whether the second appeal abated wholly or partially upon the death of one defendant (Pachorilal) when his legal representatives were not impleaded within the prescribed time under Order XXII, Civil Procedure Code (and Article 181 of the Limitation Act).
  2. Whether the contemporaneous instruments and pleadings (notably the chitthi dated 22 January 1938) established a contract of tenancy for one year or merely a temporary arrangement not constituting a lease.
  3. Whether the plaintiffs' lack of a registered or perfect title to the house defeats their claim for possession and arrears of rent in a landlord-tenant suit of this nature.
  4. Whether section 53-A of the Transfer of Property Act was available to the plaintiffs in this suit (i.e., whether they could claim its benefit).
  5. Whether section 116 of the Evidence Act operates to estop the defendants from denying the plaintiffs' title once they had been let into possession under the chitthi.
  6. Whether the earlier decree in a suit for rent (decreed on compromise) operates as res judicata on the questions of the relationship of landlord and tenant and the nature of the tenancy.

Arguments of the Parties

Plaintiffs' Arguments

  • The plaintiffs relied on the chitthi dated 22 January 1938 as establishing a tenancy for one year (terms of the tenancy being contained in the chitthi).
  • The plaintiffs contended they were entitled to the benefit of section 53-A of the Transfer of Property Act (as argued by their counsel).
  • The plaintiffs relied on earlier decrees in rent suits (including a decree founded on compromise) to plead res judicata on landlord-tenant relationship and nature of tenancy.

Defendants' Arguments

  • The defendants pleaded there was no contract of tenancy and that the parties entered into only a temporary arrangement whereby the defendants would pay Rs. 150 annually pending plaintiffs' acquisition of valid title; hence they were in possession as owners and the plaintiffs' claim was unsustainable.
  • They denied ever acknowledging the plaintiffs as their landlords and denied being precluded from challenging the plaintiffs' title.
  • On the procedural point after death of Pachorilal, defendants' counsel urged the English-law principle of joint tenancy with right of survivorship (so that survivorship would operate and impleading would be unnecessary).
  • Defendants contended section 116 of the Evidence Act did not apply because they asserted they were already in possession and were not "let into possession" by the plaintiffs.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Munnalal v. Pachorilal, 1950 NLJ 266 = ILR 1950 Nag. 605 = AIR 1950 Nag. 165 Registers consequences of failure to present sale deed for registration within prescribed time after decree under s.77 Registration Act. Used to show plaintiffs could not thereafter get the sale deed registered because they failed to present it within 30 days of the decree.
Abdul Baki v. R. B. Bansilal Abirchand Firm, Nagpur, 1944 NLJ 331 = ILR 1944 Nag. 677 = AIR 1945 Nag. 53 Consideration of impleading legal representatives under Order XXII, rule 4; rule of substantial compliance where legal representatives were brought on record within limitation. Distinguished: court held facts there were different (legal representatives were brought within limitation) and that principle did not apply where no legal representative was brought within the prescribed time.
Lilawatibai v. Gangadhar, 1952 NLJ 421 = ILR 1953 Nag. 116 = AIR 1953 Nag. 12 Order XXII mandatory procedure; abatement rules: bar of abatement comes into force 90 days after death; where conflict of decrees likely, appeal may abate in entirety. Applied to hold that mandatory provisions of Order XXII must be followed and to support the conclusion that, because legal representatives were not impleaded, the appeal abated (in part and, as to possession, wholly).
Jogeshwar Narain Deo v. Ram Chund Dutt, 23 I A 37 Observation that principle of joint tenancy is unknown to Hindu law except in coparcenary cases. Relied upon to reject defendants' submission that English rule of survivorship applied; held transferees were tenants-in-common, so deceased's interest did not automatically pass by survivorship.
Ganeshmull v. Sohanlal, ILR 1955 Nag. 33 = 1955 NLJ 224 = AIR 1956 Nag. 111 On separability of monetary claims: joint and several liability allows separation of deceased's interest for money claims. Applied to hold that the monetary claim for arrears was separable and would not cause total failure of the appeal even though one appellant's interest abated.
Deity Pattabhiramaswamy v. S. Hanymayya, AIR 1959 SC 57 Second appeal standards: limited interference with findings of fact. Referred to support the proposition that the Court could not interfere in second appeal with the first appeal Court's finding of fact regarding arrangement/tenancy.
Paras Nath v. Mohani Dasi, AIR 1959 S.C. 1204 Second appeal limitations on interfering with findings of fact. Also cited to demonstrate lack of jurisdiction to disturb first appeal's factual findings.
Bilas Kunwar v. Desraj Ranjit Singh, AIR 1915 P.C. 96 = 42 I.A. 202 Statement of principle under section 116 Evidence Act: a tenant let into possession cannot deny landlord's title so long as he has not surrendered possession. Quoted to support application of s.116 estoppel against the defendants who had executed the chitthi and been let into possession.
Krishna Prosad Lal Singha Deo v. Baraboni Coal Concern, AIR 1937 P.C. 251 = 64 I.A. 311 Section 116 estoppel applies to a tenant whether or not he was in possession at the time he took the lease; tenant cannot deny lessor's title at date of lease. Applied to reject defendants' contention that s.116 did not apply because they were already in possession; court held s.116 estoppel still applies.
Kanhaiyalal v. Jerome D'Costa, 1955 NLJ 710 = AIR 1955 Nag. 302 (F.B.) Authority cited as part of consensus that s.53-A is available only as a defence to protect possession. Referred to in discussing whether s.53-A could aid the plaintiffs; used among authorities to show consensus of its defensive nature.
Dammulal Babulal Jain v. Mohammad Bhai Haji Suleman, 1955 NLJ 742 = AIR 1955 Nag. 306 Division Bench disapproved a contrary earlier case and treated s.53-A as defensive in nature. Used to show that an Oudh decision (Eiaaz Ali v. Firdous Jehan) was disapproved and to support the view that s.53-A is generally available as a defensive protection of possession.
Prabodhkumar Das v. Dantmara Tea Co., AIR 1940 P.C. 1661 Referenced among authorities concerning s.53-A and possession protections. Referred to in survey of judicial opinion about the scope of s.53-A.
Maneklal v. Hormusji, 1950 SCR 78 Authority cited in context of s.53-A and possession. Referred to among the cases discussing s.53-A; not finally determinative in this case because matter disposed on other grounds.
Eiaaz Ali v. Firdous Jehan, AIR 1944 Oudh 212 Contrary view on s.53-A (noticed with approval in Mulla's commentary). Noted as having been disapproved by Division Bench in Dammulal's case; hence not followed here.
Sheoram v. Mulchand Bindraj, AIR 1938 Nag. 195 = ILR 1940 Nag. 181 Res judicata: decree operates as conclusive on questions directly and substantially in issue. Applied to hold that earlier decree in suit for rent operates as res judicata on existence of landlord-tenant relationship and nature of tenancy.
Shanker Sitaram v. Balkrishna Silaram, AIR 1954 S.C. 352 Decree founded on compromise can be effective for purposes of section 11, Code of Civil Procedure (res judicata). Relied upon to show that the earlier compromise decree is effective as res judicata despite being founded on compromise.

Court's Reasoning and Analysis

The Court's analysis proceeded in two principal strands: (A) the procedural question of abatement on the death of one defendant during the pendency of the appeal and (B) the substantive questions of tenancy, title and estoppel.

(A) Abatement and impleading of legal representatives

  • The Court observed that one of the defendants, Pachorilal, died during the pendency of the second appeal (3 January 1957) and that none of his legal representatives were impleaded within the prescribed time. The decision in Abdul Baki was distinguished because, in that case, the legal representatives had been brought on record within limitation.
  • The Court applied the mandatory character of Order XXII (as explained in Lilawatibai v. Gangadhar) and rejected any application of the rule of substantial compliance where no legal representative was brought within time. The bar of abatement operates strictly.
  • The defendants' submission invoking English law of joint tenancy and survivorship was rejected: the Court relied on Jogeshwar Narain Deo to state that joint tenancy as a rule of survivorship is not recognised in Hindu law (except in coparcenary), and transferees generally take as tenants-in-common. Consequently the deceased’s interest did not pass by survivorship and the appeal abated to the extent of his interest.
  • On the effect of abatement, the Court divided the reliefs: for a money claim (arrears of rent) the liability was joint and several so the deceased's interest could be separated (Ganeshmull v. Sohanlal) and thus abatement would not cause total failure as to the monetary claim. However, for possession of the house the decree was joint and indivisible; successful prosecution by the surviving defendant could produce inconsistent decrees and hinder execution in respect of the deceased's interest. Therefore the appeal, insofar as it related to possession, wholly abated (supported by Lilawatibai).

(B) Substantive issues: tenancy, title, s.53-A, s.116 and res judicata

  • The Court rejected the learned single Judge's finding that there was only a temporary arrangement and not a tenancy. The written statement language did not support the finding that the parties agreed that the lease would not operate until plaintiffs acquired valid title. The only witness on the point did not support the defendants' case, and the first appeal Court had found against the arrangement. As a result, the Court concluded there was no jurisdiction to disturb that factual finding on second appeal (citing Deity Pattabhiramaswamy and Paras Nath).
  • On construction of the chitthi dated 22 January 1938, the Court held it to be the repository of the contract terms and a plain reading showed a contract of tenancy for one year.
  • The Court held that the claim cannot be defeated simply because the plaintiffs did not have a perfect title at the time; in a landlord-tenant suit of the relevant type (including a tenant holding over after determination of the lease), the Court will not go into the landlord's title as it stood on the date of the contract beyond issues necessary to determine whether the contract was made. The Court found the question whether plaintiffs had valid title on 22 January 1938 was not material for purposes of the suit.
  • On section 53-A of the Transfer of Property Act the plaintiffs' counsel sought to rely on it. The Court noted a consensus of judicial opinion that s.53-A is generally available only as a defence to protect possession (and cited Kanhaiyalal, Dammulal and others). An Oudh case to the contrary had been disapproved. The Court did not pronounce finally on whether a plaintiff defending possession could claim s.53-A because the case could be disposed of on other grounds.
  • The Court applied section 116 of the Evidence Act: since the chitthi established a tenancy and the defendants were let into possession under it, section 116 estoppel applied and precluded the defendants from denying the plaintiffs' title at the date of lease. The Court rejected the defendants' contention that s.116 could not apply because they were already in possession when the lease was made, citing authority (Krishna Prosad Lal Singha Deo) that estoppel applies irrespective of that fact.
  • The Court further observed that section 116 does not bar a tenant from disputing a subsequent derivative title of the lessor if title has devolved or passed subsequently by recognized legal modes; but that circumstance was not present here (the plaintiffs' defective title had not passed to another by any legal process), so s.116 remained applicable.
  • The Court held that an earlier decree in a suit for rent (decreed on compromise) directly and substantially put in issue the existence/nature of the landlord-tenant relationship; therefore that decree operated as res judicata on those questions (Sheoram v. Mulchand Bindraj), and a compromise decree is effective for section 11 CPC (Shanker Sitaram v. Balkrishna Silaram).

Holding and Implications

Holding: The Court allowed the appeal. The relevant holdings were:

APPEAL ALLOWED; the decree of the learned single Judge is set aside and the decree passed in first appeal is restored.

Implications:

  • On procedure: The death of one defendant (Pachorilal) without impleading his legal representatives within the prescribed period caused abatement of the appeal to the extent of his interest; because the decree for possession was joint and indivisible, the second appeal as to possession wholly abated, while the monetary claim (arrears) remained separable.
  • On merits: The Court found that the chitthi dated 22 January 1938 established a tenancy for one year; section 116 Evidence Act estops the defendants from denying the lessor's title as of the date of the lease; the plaintiffs' imperfect title did not defeat their claim in this landlord-tenant suit; and the earlier decree in the rent suit operates as res judicata on the landlord-tenant issues.
  • Relief and costs: The plaintiffs' whole claim was decreed (subject to the procedural findings about abatement), the decree of the learned single Judge was set aside, and the first appeal decree restored. The respondents were ordered to bear their own costs and to pay the plaintiffs' costs throughout; counsel's fee in the appeal was fixed at Rs. 75.
  • Precedential effect: The Court resolved the case by applying established precedents and statutory principles; the opinion does not assert that any novel legal principle or new precedent was being laid down—its conclusions rest on applying existing authority to the facts.

    Munnalal Beharilal Jain And Another v. Balchand Lachmandas And Others

    K. L. Pandey J.-

    This appeal under the Letters Patent is directed against the reversing decree of the learned single Judge by which the plaintiffs' claim for possession of a house and arrears of rent in respect of that house was dismissed.

    2. The main facts of this case, which are no longer in controversy, may be briefly stated. The house in dispute was owned by the two defendants and their father Lachhmandas. They executed in favour of the plaintiffs a sale deed dated 22nd January 1938. Also, on the same date, the two defendants further execut­ed a chitthi by which they undertook to pay to the plaintiffs Rs. 150 as rent of the house for one year and promised to vacate it at the end of that year. It appears that Lachhmandas died subsequently. Since the defendants did not get the sale deed registered, the plaintiffs filed a suit under section 77 of the Regis­tration Act and obtained a decree directing its registration, Even so, they did not present the sale deed for registration within 30 days of the decree and could not thereafter get it registered as decided finally in Munnalal v. Pachorilal, 1950 NLJ 266 = I L R 1950 Nag. 605= AIR 1950 Nag. 165. In the mean while the plaintiffs had filed Civil Suit No, 70 of 1941 for recovery of arrears of house rent. That claim was compromised but the defendants applied to the Debt Belief Court and secured an order for satisfaction by instal­ments which they have been paying. The plaintiffs filed another like suit - No. 57-B of 1945-and obtained a decree in terms of a compromise between the parties. Then their suit - No. 6-B of 1950 - was however dismissed in default, Subsequently, by a notice dated 19th February 1951, which the defendants received on 21st February 1951, their tenancy was terminated and they were required to vacate the house by 22nd March 1951 but they continued to be in possession of the house.

    3. In substance, the plaintiffs claimed that, having taken the house from them and also having acknowledged them 33 landlords, the defendants must-vacate the house and pay the arrears of house rent.

    4. In answer, the defendants pleaded inter alia that there was no contract of tenancy and that there was only a temporary arrangement for mutual conve­nience whereby they agreed to pay Rs. 150 annually to the plaintiffs pending acquisition by them of a valid title to the house. Since the plaintiffs failed to acquire title to the house and the defendants are in possession of that house as owners, the plaintiffs' claim for possession and house rent is unsustainable. The defendants further averred that they never acknowledged the plaintiffs as their landlords and denied that they were precluded from challenging the plaintiffs' title to the house.

    5. The Court of first instance accepted the defence and dismissed the suit. While the first appeal Court reversed that decree, the learned single Judge, taking a different view on most of the questions in controversy, restored the decree of the Court of first instance.

    6. At this stage, it will be convenient to set out the conclusions of the learn­ed single Judge which have been assailed before us:

    (i) During the pendency of the second appeal, one of the appealing defendants, Pachorilal died on 3rd January 1957. His personal heirs were his legal representatives and unless they were impleaded as parties within the prescribed time, the appeal would partially abate. Since the limitation for impleading the legal representatives in such a case was 3 years under Article 181 of the Limitation Act, they were directed to be so impleaded; Abdul Baki v. R. B. Bansilal Abirchand Firm, Nagpur, 1944 NLJ 331=I L R 1944 Nag. 677=A I R 1945 nag. 53.

    (ii) There was in this case no lease but only an arrangement as pleaded by the defendants.

    (iii) The claim is unsustainable when the title does not reside in the plain­tiffs.

    (iv) The plaintiffs cannot take advantage of the provisions of section 53-A of the Transfer of Property Act which is available only as a defence for protecting possession.

    (v) In spite of the chitthi dated 22nd January 1938, the decree for arrears of rent and the provisions of section 116 of the Evidence Act, the defendants were not precluded from denying the plaintiffs' title.

    7. The first question which we have to consider is whether, in view of the facts of this case, the appeal abated wholly or partially. In Abdul Baki v. R. B. Banailal Abirchand Firm, Nagpur, 1844 N L J 331=I L R 1994 Nag. 577=A I R 1945 Nag 53 all the known legal representatives of a defendant, who had died, were brought on record within limitation. In view of this fact, it was held that there was sufficient compliance with the provisions of Order 22, rule 4, Civil Procedure Code. It is obvious that the facts of that case are distinguishable from those in this case because none of the legal represent­atives of the appellant Pachorilal was brought or sought to be brought on record within time. The rule of substantial compliance and sufficient representation has no application to a case where none of legal representatives of a dead litigant was brought on record within limitation. As pointed out by Hidayatullah J. (as he then was) and Choudhuri J. in Lilawatibai v. Gangadhar, 1952 N L J 421 = I L R 1953 nag. 116=a i r 1953 nag. 12 the provisions of order 22 of the code and the procedure therein prescribed are mandatory and must be followed in every case where the Us is sought to be continued in the right of the dead persons by those living. According to their Lordships, the bar of abate­ment comes into force exactly 90 days after the death of a litigant and if the mandatory provisions of Order 22, rules 3, 4 and 11 have not been invoked, the appeal abates wholly or partly in accordance with the nature of the lis. The learned counsel for the defendants did not endeavour to support the view taken by the learned single Judge or the reasons given by him. He, however, urged on the basis of the well-recognised principle of English law that the defendants were joint tenants, that on the death of one of them, the entire tenancy right devolved on the other by survivorship and that, in this view, it was unnecessary to bring the legal representatives of the deceased on record. The rule of English law that a transfer to a plurality of persons creates a joint tenancy with right of survivor­ship is unknown to Hindu Law. The Judicial Committee observed in Jogeshwar Narain Deo v. Ram Chund Dutt, 23 I A 37 at p. 44: -

    "The principle of joint tenancy appears to be unknown to Hindu law, except in the case of coparcenary between the members of an undivided family."

    Even if the transferees are members of an undivided family, they will, in the absence of any other indication to the contrary, take as tenants-in-common. It follows that the two defendants, Balchand and Paohorilal, were tenants-in-common and that, when the legal representatives of Pachorilal did not apply within limitation for being brought on record, the appeal abated to the extent of his interest in it.

    8. We will now consider the effect of such abatement on the whole appeal. It will be recalled that the subject-matter of the second appeal was a decree for possession of a house and a specific sum of money on account of arrears of rent. In so far as the claim in second appeal related to a specific sum of money, there was a joint and several liability and the interest of the deceased appellant could be separated from that of Balchand with the consequence that it would not entail a total failure of the appeal: Ganeshmull v. Sohanlal, ILR 1955 Nag. 33=1955 N L J 224=A I R 1956 Hag. 111. It would, however, be different in so far as it related to possession of the house. The decree, which was the subject-matter of appeal before the learned single Judge, entitled the plaintiffs to take possession of the whole house against each defendant. As against one of them it became, as shown, final. If the other were allowed to prosecute his appeal and if he succeeded, the plaintiffs would, as against him, cease to be entitl­ed to take possession of the whole house. It would be seen that the substantial nature of the decree for possession was that it was joint and indivisible without any separate or separable rights set up by the defendants. Further, a successful appeal by the surviving defendants would not only result in two inconsistent or contradictory decrees in one and the same suit but would also effectively prevent the plaintiffs from executing the decree of the first appeal Court even in regard to the interest of Pachorilal. In this situation, we are of opinion that the second appeal, in so far as it related to possession of the house, wholly abated. If any authority is necessary, we may refer to Lilawatibai v. Gangadhar, 1952 N L J 421 = I L R 1953 Nag. 116=A I R 1953 Nag 12 where their Lordships observed:

    "Such a conflict must be avoided and is of the essence of Order XXII of the Code of Civil Procedure. It has been held over and over again that where there is a, likelihood of a conflict of decrees, the appeal must be treated to have abated in its entirety."

    9. We are quite unable to accept the view of the learned single Judge that there was any arrangement as pleaded by the defendants. This is what they stated in their written statement;

    "There was no contract of tenancy between them........That the parties being aware of the above circumstances made a temporary arrangement for their mutual convenience, whereby the defendants agreed to pay Rs. 150 annually to the plaintiffs pending acqui­sition of a valid title by the latter."

    We do not read this as saying that there was a contract of tenancy but, by a contemporaneous oral agreement, the parties stipulated that it would not operate until the plaintiffs acquired a valid title. That being so, the finding of the learn­ed single Judge to that effect must be regarded as one having no foundation in the pleading. That apart, the only witness on the point, Pachorilal D. W. 1 did not support that case and, what is more, there was a finding of the first appeal Court against the arrangement. In this situation, there was no jurisdiction to interfere in second appeal with that finding of fact: Deity Pattabhiramaswamy v. S. Hanymayya, AIR 1959 S C 57 and Paras Nath v. Mohani Dasi, AIR 1959 S. C. 1204. We wish to emphasise this aspect of the case because we notice that the view which the learned single Judge took of this matter coloured nearly all his conclusions. The emerging position is that the chitthi dated 22nd January 1938 must be regarded as the repository of all the terms entered into between the parties. A plain reading of that docu­ment clearly shows that there was between the parties a contract of tenancy for only one year.

    10. The view that a landlord's claim like the one made in this suit cannot be maintained because be has no title to the house let out by him is clearly un­tenable. The scope of a suit by a landlord for possession from his tenant, includ­ing a tenant holding over, after the determination of the lease envisaged by section 7 (xi) (oc) of the Court-fees Act is limited and the Court will not go into the question of title of the landlord as the date of the contract of tenancy, though that question may be considered incidentally for determining, if disputed, whether the contract was made. As we would show in the sequel, even apart from the restricted scope of this suit, it is not open to the defendants to deny that the plaintiffs had title to the house on the date on which they made the contract of tenancy. In our opinion, the question whether the plaintiffs had a valid title to the house on 22nd January 1938 is not material for the purposes of the suit.

    11. The learned counsel for the plaintiffs contended that they were entitled to the benefit of section 53-A of the Transfer of Property Act. The consensus of judicial opinion is that it is available only as a defence to protect possession. We may refer only to Kanhaiyalal v. Jerome D'Costa, 1955 N L J 710=A I R 1955 Nag. 302 (F. B.). Dammulal Babulal Jain v. Mohammad Bhai Haji Suleman, 1965 N L J 742=AIR 1955 Nag. 306. Prabodhkumar Das v. Dantmara Tea Co., AIR 1940 P C 1661 A 293 and Maneklal v. Hormusji, 1950 SCR 78. In support of the contrary view, we were referred to three cases including Eiaaz Ali v. Firdous Jehan, A IR 1944 Oudh 212 which was noticed with approval by D. F. Mulla in his commentary on the Transfer of Property Act. We find that the Oudh case was disapproved by a Division Bench of this Court in Dammulal's case, 1965 N L J 742=AIR 1955 Nag. 306. Since this case can be disposed of on other grounds, we do not consider it necessary to pronounce any opinion on the question whether a plaintiff who, in effect, seeks to defend his possession can claim the benefit of section 53-A of the Transfer of Property Act.

    12. As we have indicated earlier, the tenancy must be regarded as duly established by the chitthi dated 22nd January 1938 which the defendants execut­ed in favour of the plaintiff. That being so, the provisions of section 116 of the Evidence Act are attracted. The Judicial Committee observed in Bilas Kunwar v. Desraj Ranjit Singh, AIR 1915 P C 96=42 I A 202 at p. 207 as follows:

    "Section 116 of the Indian Evidence Act is perfectly clear on the point, and rests on the principle well established by many English cases, that a tenant who has been let into pos­session cannot deny his landlord's title however defective it may be, so long as he hag not openly restored possession by surrender to his landlord."

    The learned counsel for the defendants contended that they were already in possession, that they were not let into possession by the plaintiffs and that therefore the estoppel under section 116 of the Evidence Act could not apply. An argu­ment like this was repelled by the Judicial Committee in Krishna Prosad lal Singha Deo v. Baraboni Coal Concern, A I R 1937 P C 251=64 I A 311 and it was held that a tenant would be estopped whether he was or was not in possession of the property at the time when he took the lease.

    13. It is no doubt true, as pointed out by the Judicial Committee in the last-mentioned case, that the principle of section 116 of the Evidence Act does not apply to disentitle a tenant to dispute the derivative title of one who has since become entitled to the reversion nor does it preclude the tenant from plead­ing that the title of the original lessor has since come to end. In our view, this postulates subsequent devolution of the title of the lessor by death of passing of title by other modes recognised by law. The underlying principle cannot be used to show that the lessors had no title even when the defendants took the lease. In the instant case, when the plaintiffs gave the lease, they had a defective title. That title, whatever its defects, has not passed to any other person by any process known to law and all that has happened is that the plaintiffs are no longer entitled to cure the defect in their title. That being so, the rule in the case of Krishna Prosad lal Singha Deo v. Baraboni Coal Concern, A I R 1937 P C 251=64 I A 311 is of no assist­ance to the defendants. This is what their Lordships observed in that case:

    "What all such persons are precluded from denying is that the lessor had a title at the date of the lease, and there is no exception even for the case where the lease itself discloses the defect of title."
    [Page 319].

    We think, this also answers the further contention that, for want of registration, the plaintiffs did not have a valid title to the house.

    14. We are also of opinion that, in the earlier suit for rent, which was decreed, the existence or non-existence of relationship of landlord and tenant and the nature of tenancy were directly and substantially in issue and the decree in that suit operates as res judicata on those two questions: Sheoram v. Mulchand Bindraj, A I R 1938 Nag. 195=I L R 1940 Nag. 181. The fact that it was a deoree founded on a com promise would not make it the less effective for the purposes of section 11 of the Code of Civil Pro­cedure: Shanker Sitaram v. Balkrishna Silaram, AIR 1954 S C 352.

    15 In view of what we have said- in the foregoing paragraphs we think that, even apart from the question of abatement of the second appeal, the whole claim must be decreed. The decree of the learned single Judge is, therefore, set aside and the one passed in first appeal is restored. The respondents here shall bear their own coats and pay those of the plaintiffs throughout. Counsel's fee here is Rs. 75.

    Appeal allowed.

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    Munnalal Beharilal Jain And Another v. Balchand Lachmandas And Others
    (Nov 30, 1960)